CX660018: Improving Employee Retention at Hollywood Bakery Report

This project report investigates the issue of high employee turnover at Hollywood Bakery Company, a major bakery chain. The study aims to identify the key factors contributing to employee attrition, utilizing a mixed-method research approach involving both qualitative and quantitative data collection techniques. The report provides a comprehensive literature review, exploring factors such as job dissatisfaction, stress, work-hour balance, reward management, and training and development. It then details the research methodology, including the use of surveys and interviews, followed by data analysis, including reliability and correlation analyses. The findings highlight the reasons behind employee attrition and the report concludes with recommendations for improving employee retention, including the application of the Zinger Model. The study aims to provide senior management with actionable insights to address the company's staffing challenges.

Running Head: IMPROVING ORGANIZATIONAL PERFORMANCE
Improving Organizational Performance
Name of the Student
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Author Note

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Executive Summary
The aim of the study is to understand the causes that is leading to employee retention in
Hollywood Bakery Company. The key factors that are causing the attrition is discussed along
with the utilization of retention theory and model which will help the company in mitigating the
retention issues. The background on employee retention is stated and research questions has been
given. The research methodology that has been used is mixed methodology, which included both
qualitative and quantitative data by using interview technique and survey method. The
qualitative analysis is stated in the study that determines the percentage of influence it casts on
employees for attrition. The quantitative data is also provided in the study. The factors that are
the reasons behind employee retention is also stated in the study.

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Table of Contents
1. Introduction..............................................................................................................................3
1.1 Background................................................................................................................................4
1.2 Goals and objectives of the project............................................................................................4
1.3 Research Questions....................................................................................................................5
2. Literature Review........................................................................................................................5
2.1 The factors that are causing employee attrition in the industry.............................................5
2.1.1 Job Dissatisfaction..............................................................................................................6
2.1.2 Stress...................................................................................................................................7
2.1.3 Work-hours Balance...........................................................................................................7
2.1.4 Reward Management..........................................................................................................7
2.1.5 Training and development..................................................................................................8
2.1.6 Motivation...........................................................................................................................8
2.1.7 Work environment..............................................................................................................9
2.1.10 Flexibility in workplace....................................................................................................9
3. Project Management..................................................................................................................10
3.1 Employee Retention Theory................................................................................................10
4. Intended Usage of Theories Models and Frameworks..............................................................10
4.1 Employee Retention Model.................................................................................................10
4.1.1 Zinger Model................................................................................................................10

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5. Research Methodology..............................................................................................................11
6.0 Data Findings and Analysis.....................................................................................................11
6.1 Quantitative Analysis...............................................................................................................11
6.1.1 Reliability Analysis..............................................................................................................11
6.1.2 Normality Test......................................................................................................................13
6.1.3 Demographic Data................................................................................................................14
6.1.4 Correlation analysis..............................................................................................................19
6.2 Qualitative analysis..................................................................................................................20
6.2.1 Coded Data...........................................................................................................................21
6.2.2 Discussion.............................................................................................................................23
7.0 Conclusion and Recommendation...........................................................................................24
7.1 Recommendation.....................................................................................................................24
Appendices....................................................................................................................................25
Appendix 1.....................................................................................................................................25
Appendix 2.....................................................................................................................................44
References......................................................................................................................................53

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Shortage of employees and high staff turnover at Hollywood Bakery Company
1. Introduction
The Hollywood Bakery company has been one of the biggest bakery company that has
been supplying fresh pies, breads and savories along with pastries, cakes and slices. The
company has employed skilled workers in their baking team that helps them in producing high
quality food items, they are always serving fresh, and tasty food items the company uses fresh
material for baking their pastries. The company was founded in 1995, and the company has been
operating its business for almost more than two decades. The company has been operating its
functions along with central manufacture facilities that run almost 24X7 for delivering items and
they are associated with almost many coffee shops (Chen, et al). The main motive of the
company s to serve their customers with best quality food items and a wide variety of products
from which they can make their choices and the prices that they have to pay for the food items is
also affordable.
The strategy that the company plays in order to gain the competitive advantage in the
industry is by providing a wide variety of food items to the customers at very affordable price so
that they can retain them. The infrastructure of the company and the interiors of the stores are
well designed and the arrangements are done in a very systematic this also helps the company in
maintaining a good impression in front of the customers. The company is also very particular in
maintaining the hygiene factors as they conduct business with food items it is also important for
them to have proper sanitization (Youn, Kim & Song, 2017). The authorities of the company also
follow a systematic process of operating their business. The company also has supervisors that
have strict supervision on the working for the employees and supervising that they are properly
executing their journey. The aim of the study is to understand the reasons that is causing high

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staff turnover and the aims and objectives of the sturdy will be discussed the theories and models
on employee retention will also be discussed along with the factors that is affecting employee
retention.
1.1 Background
Employee retention is a big problem that the companies are facing and it causes negative
impact on the production of the company as they are the main source that triggers positive
production and help in revenue growth of the company, the employees devote their efforts and
time for achieving the goals of the company. Therefore, the company also has certain
responsibilities towards their employees in order to retain them. The company must have policies
for the supervisors should also hear the employees that will in order to safeguard their rights and
their opinion so that a balance communication can be followed (Chen, et al. 2016). The company
must also ensure that a positive and healthy environment is being maintained in the premises of
the company that will help the employees in bringing positive productivity in the company. The
employee retention is a major problem that the company should control as that will help them in
earning revenue.
1.2 Goals and objectives of the project
The aim of the study is to understand the various factors that is causing employee
retention in Hollywood Bakery Company the main issue that the company is facing is related to
employee attrition. The bakers of the company are not willing to stay associated with the
company and this is the reason the company is facing huge attrition in the company. Therefore,
the objectives of the research is stated below:
To determine the main factors that is leading to staff turnover in Hollywood Bakery Company

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To determine the various approaches related to employee retention that is used to increase along
with sustain the increasing rates of employee attrition in Hollywood Bakery.
To determine the basis of employee turnover in the company
1.3 Research Questions
What are the main factors that are causing staff turnover Hollywood Bakery Company?
What are the models and theories that can help in understanding employee attrition and control
them?
How can the basis of employee attrition can be controlled in the company?
2. Literature Review
2.1 The factors that are causing employee attrition in the industry
Many causes leads to employee attrition in the company and that negatively affects the
productivity of the company. The company must also understand the factors that is leading the
employees in job dissatisfaction, demotivation. The company must also ensure that they are able
to provide healthy and safe environment to the employees so that they can devote their efforts
that will help the organization in attaining positive productivity. The managers that are involved
in the industry tends to focus in their growths and overlook the basis requirements of the
employees, which leads to dissatisfaction (Youn, Kim & Song, 2017). The managers are unable
to understand the grievances, their opinions are not given any importance, which leads to
demotivation, and they tend to leave the job. In this industry, the employees have to work for
long hours and this brings fatigue in the employees’ and they are also not given any extra
payment for the overtime they are doing, therefore it results in demotivation and disregard for the

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company. The flexibility in the work hours is also absent, the employees have to undergo strict
policies that are often difficult for them to maintain and gradually it results in conflicts amongst
the managers, authorities and the employees.
The stability on the work is very scarce and the employees find difficulty in maintaining
a balance in their professional and personal life, due to the long working hours. The attrition in
the hospitality industry is very high and it seems to increase gradually, the staffs that are working
in the hotel industry are not subjected too much growth in their career life and they do not get
much opportunities to grow in their professional life which highly demotivates them. Therefore,
this also stems in attrition in the company the staffs also feel that they are not being appreciated
and they are not given any rewards by the authorities that can help in motivating them an devote
more efforts of the company.
2.1.1 Job Dissatisfaction
The employees of the concern face job dissatisfaction because the authorities do not
appreciate their efforts and they are not rewarded by the company, which will motivate them and
make them devote more effort for the company so that they can attain the targeted goals and
develop their skills. The staffs also face harsh behavior from their supervisors if they make any
mistake, and the criticisms make them demotivated due to which the company experiences high
attrition rates. The staffs are always scrutinized and criticized even if they are performing well.
The authorities tend to make them give more efforts so that they can provide customers the best
services and attain the competitive advantage (Genly, 2016).

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2.1.2 Stress
The pressure that the company provides to the employees leads to huge stress as they are
scrutinized for the work that they are doing. They are not appreciated for the efforts that they are
providing. The employees are forced to work for long hours for the company and they do not
receive any extra payment for that which triggers stress in the employees. They sudden changes
that the company decides to implement are not discussed with the employees and their opinions
are not considered yet the authorities want the employees to adapt the changes with fluency. The
employees face difficulty in adapting the changes and make mistakes for which they are
criticized by the managers and authorities (Han, Bonn & Cho, 2016).
2.1.3 Work-hours Balance
The work-hours balance is very less in this company as the employees are forced to work
for long hours, that is beyond their shift timing and they are not even given any extra payment
that will motivate them to work for more hours. The company also forces the employees to
devote more hours that leads tiredness and fatigue due to which they cannot concentrate on their
duties and they often are criticized for their mistakes (Msengeti & Obwogi, 2015).
2.1.4 Reward Management
It is very important for the companies to acknowledge the efforts that the employees are
providing the company must provide proper reward system for the employees that are
performing exceptionally well in the concern and give them rewards for their performance. The
company can give both financial rewards to the employees that will help them in getting
motivated and devote more efforts for the company. Hollywood Bakery Company does not
encourage any kind of reward system that resulted in high attrition rates, therefore, the employee
turnover in the company has caused huge downfall in the revenue of the company. The

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employees are also attracted towards incentives that the company should implement and provide
them for the performance that they are giving for the company in attaining the revenue.
Incentives is an important factor that highly attracts the employees to perform better, devote their
maximum efforts, and time in the organization. Absence of proper reward policies and incentive
schemes demotivates the employees lead to job satisfaction and the attrition rates as a result gets
high (Kossivi, Xu & Kalgora, 2016).
2.1.5 Training and development
The hiring of the employees are done but HR and their skills and potential are not
properly analyzed due to which the employees feel that they are in wrong industry and the work
is not appropriate for them to perform. The companies in order to retain the employees must
initiate proper training and development programs so that the skills of the employees are shaped
properly. Selection of appropriate training and development program will help the company in
providing good training to the employees, which will bring positive productivity to the company
and help the employees as well in the developing their individual goals and make themselves
eligible for acquiring incentives (Uen, et al. 2018).
2.1.6 Motivation
In order to retain the employees in the company it is very important to motivate them for
the duties that they are providing, excessive criticism and scrutiny can make the employees
demotivated and the urge of giving efforts for the company will gradually decrease. Therefore,
the authorities must always try in motivating their employees that will boost their performance.
The loopholes that the employees have in performing their duties must be properly analyzed and
the supervisors must try to give them proper suggestion that will help them in identifying their

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mistakes and take necessary measures to mitigate them. The informal way of helping and
guiding, the employees will also keep them motivated (Msengeti & Obwogi, 2015).
2.1.7 Work environment
The work environment of the company is a big factor that can either have negative or
positive influence on the performance of the employees. The absence of proper ambience can
lead to high attrition; it is important for the authorities to understand the loopholes that is
resulting in attrition because of the environment in the company. The company must also have
policies that will safeguard the rights of the employees and they should feel safe and secured
within the premises of the company. The safety and security of female employees must be
safeguarded, yet the company fails to provide a good environment to the employees that will
help them in giving productivity to the company (Goh & Lee, 2018).
2.1.10 Flexibility in workplace
It is very important for the company to have proper flexibility in the workplace as that
helps in maintaining a proper environment for the employees to execute out their duties. The
company must implement flexible working arrangements for the employees so that they can
work with less pressure and there will be less probability of mistakes. The employees are not
given flexible work hours rather they are made to work for more hours that is at times even after
their shift timing. Therefore, due to this, the employees undergo stress, fatigue and exhaustion,
which drastically affects their performance, mental stability, and they tend to feel demotivated.
This stems to high attrition rates in the company, the stringent policies and shift timing often
bring negative impact on the employees and they develop disregard for the company and their
authorities. The disagreements between the opinions and decisions of the employees and the

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authorities leads to conflicts, which harms the productivity of the company and leads to high
attrition rates within the organization (Alfayad & Arif, 2017).
3. Project Management
3.1 Employee Retention Theory
According to Msengeti & Obwogi, 2015), the companies need to retain their employees
so that they can attain their targeted revenue and gradually increase the profit margin of the
company it is also important for the company to employ the suitable candidates so that they can
easily adjust with the ambience and knows how to manage workload. The company must
understand the various reasons that is causing employee attrition in the company and implicate
the theories and models that will help them in overcoming the issue. Therefore, the theory that is
initiated by Herzberg will help the company in decreasing the attrition rate. The Herzberg theory
mainly focus on two aspects that is motivator and hygiene, the motivator factor is the one that
helps the employees to stay motivated and perform their duties properly. The motivation is huge
factors that helps the employees to survive in the organization and the hygiene factors are that
defines the relationship that the employees hold with their authorities and conflicts between the
employees and authorities can stem to work related stress issues, and pressure that is given on
the employees by the authorities of the company (Karumuri, 2016).